Are you thinking about starting a side hustle to generate extra income? Many people are doing just that to varying degrees of success. Consider the following six tips to get yourself on the right track.
1. Do Something That Interests You
To make your side hustle work, it's best to pick something that you're interested in. You're doing this in your "spare" time, so if you can choose a line of work that you truly enjoy, you're much more likely to stick with it, rather than doing a lot of work up front and quitting before it even takes off. If your side hustle is interesting to you, it will serve as motivation even if you don't always feel like working.
2. Create a Business Plan
Even a side hustle needs a business plan. This will not only help you if you apply for a business loan, but it will serve as a guide for yourself to get the business off the ground.
"Starting with an executive summary can help you figure out a few crucial items: an outline of what your business will do and what types of problems you’re solving," explains Catherine Hiles at Time.* "Do you have a lot of friends who struggle to find pet care when they are out of town? A pet-sitting business could help ease their burden while you earn extra income. Next, identify the type of customer you’re targeting and how you will find those customers to build your business. Word of mouth is huge, but you may also need to allocate time and money toward a marketing plan to attract more customers."
Be sure to include financial aspects of the business, such as what funds you'll need to get started and how you intend to spend that money and drive revenue.
3. Know What You're Up Against
You'll also need to get a sense of the competition you'll face as well as an idea of how you will be able to stand out.
"While it’s important to find a market that aligns with your skills and interests, it’s equally important to find a unique angle within that market," says Digital Dollars Mastery.** "Look for gaps or unmet needs and find ways to address them. Consider how you can differentiate yourself from the competition and offer something that others don’t. This could be through unique features, personalized service, or a different pricing structure. By finding a unique angle, you’ll stand out and attract customers who are looking for something different."
4. Figure Out If You Want to Do It Long Term
Decide if your side hustle is a project you want to pursue for the long term or if you're just trying to make a little extra income and move on. How quickly you're able to achieve success may play a role in your decision, but the aforementioned business plan can at least help you make plans for the future. If you wish to move forward with your side hustle for the foreseeable future, you will need to dedicate a lot more of your time to it, as well as have a thorough financial plan. Otherwise, you may be setting yourself up for failure.
5. Create a Schedule
How you manage your time is critical. This is a side hustle, so it's not your primary source of income or responsibility, but at the same time, you need to treat it like it is during the time you allocate to focus on it. Create a schedule that works around your primary work responsibilities and still leaves you free time for family, friends, relaxation, and other facets of life. Stick to your schedule as much as possible so that you don't find yourself slacking on what needs to be done to get your side hustle going.
6. Figure Out Financing
If you need a funding source beyond your main source of income, there are multiple options for obtaining funding, but your best bet is to get in touch with your bank, which can help you figure out the right path. Explore Nevada State Bank's business financing options here.
A side hustle can be fruitful and even fun if you choose the right one. Remember that you're still running a business, so you'll need to put serious thought into your plan, your marketing, your competition, and your financing.
* https://time.com/personal-finance/article/start-a-side-hustle/